EY: Ripple and other blockchain solutions can compete with Indian banks – Bits Media

According to the report, prepared by analysts of a consulting company Ernst&Young for Competition Commission of India, traditional Indian financial institutions may face "competitive pressure" from blockchain platforms, including , in the field of cross-border payments. The report notes:

"In theory, after blockchain applications have passed the pilot and proof of concept stage, they will compete with other systems and technologies, providing similar services. This is already happening to some extent in the financial services sector.. An example is the cross-border payments market, where traditional banks, perhaps, will have to compete with solutions like ».

Analysts suggested, what, insofar as faster, cheaper and more transparent, technology could put “competitive pressure” on India's traditional banking system. According to , the company offers services in 55 countries. This spring, the company also began testing a closed version of the blockchain., which will provide central banks with a safe, controlled and flexible solution for issuing and managing government cryptocurrencies.

The authors of the report noted, that in India cryptocurrencies “have received a lot of regulatory attention over the past few years, culminating in a recent recommendation by an inter-ministerial committee to ban the trade and storage of cryptocurrencies. ". Recall, that India's finance minister recently said, that the new regulation will protect investors from crypto asset volatility. According to experts, government may propose an emergency stop mechanism.